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Archive for January, 2011

1. This is a surprise.  Does anyone know more about this conference?

U.S. experts will participate in a conference on oil safety in Cuba this April, Reuters reported. The conference comes as the BP disaster on the U.S. side of the Gulf of Mexico is raising concern over the start of offshore drilling in Cuban waters this year. The arrival of an exploratory drilling platform in Cuban waters that had been expected for early this year was reportedly postponed to summer.

2. TheHill.com has a pretty good energy blog of particular interest to Washington-types (you know who you are!).

National oil spill commission co-chairman William Reilly called on the Obama administration to think about negotiating a treaty with Mexico and possibly Cuba that would lay out uniform safety standards for offshore drilling in the Gulf of Mexico.

3. Nothing new is being reported on the blowout/uncontrolled flow/gas leak beneath the East Cameron block 278 B platform that Apache is calling a “water disturbance.” Spin doctors never sleep.

Based on the limited information that is available, well integrity issues loom large and there appear to be some disturbing similarities with the Main Pass 91 blowout in 2007.

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Be sure to check them out!

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Link

Salazar and Bromwich also announced that they are establishing a permanent advisory body through which the nation’s leading scientific, engineering, and technical experts will provide input on improving offshore drilling safety, well containment, and spill response. Secretary Salazar has asked former Sandia National Laboratory Director Tom Hunter to lead the body, which will be called the Offshore Energy Safety Advisory Committee (Safety Committee).

The new Bureau of Ocean Energy Management (BOEM) will be responsible for managing development of the nation’s offshore resources in an environmentally and economically responsible way. Functions will include: Leasing, Plan Administration, Environmental Studies, National Environmental Policy Act (NEPA) Analysis, Resource Evaluation, Economic Analysis and the Renewable Energy Program.

The new Bureau of Safety and Environmental Enforcement (BSEE) will enforce safety and environmental regulations. Functions will include: All field operations including Permitting and Research, Inspections, Offshore Regulatory Programs, Oil Spill Response, and newly formed Training and Environmental Compliance functions.

 

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Our vision on the Rigs-to-Reefs ++ page is becoming a reality (only without the rigs :)). BOE’s Cheryl Anderson sent us an update from an undisclosed location.  Hmmm…..

A Florida couple is making plans to live in the first permanent undersea colony.  Fox.com

Update on underwater condos

Poseidon Underwater Resort

This suite has been reserved for you!


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Super-geologist Paul Post is tracking Cuban and Bahamian activity and sent this map and update.

click on image to enlarge

Two thousand and eleven could be a key year for oil minnow Bahamas Petroleum Company. The AIM-quoted explorer has hired the Osprey Explorer seismic vessel, owned by Norway’s SeaBird Exploration, to shoot close-grid 2D over its four licences to the south of the Bahamas with a view to firming up a prospect for drilling in Q4. This would be the first well in Bahamian waters since 1986 and will be an acid test of BPC’s claim to be holding first mover advantage in waters that could be home to billions of barrels of oil. OilBarrel.com

Note that the area of interest is adjacent to Cuban waters, so the Cuban findings will be of great interest to the Bahamas.  I don’t know if the two countries have an information sharing agreement. Perhaps the Scarabeo 9 semisubmersible will move to Bahamian waters after drilling one or more wells off Cuba.

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Apache said a hydrocarbon sheen was discovered in the water near its production platform in East Cameron Block 278 as the company was permanently plugging and abandoning nearby by non-producing wells. Apache said its workers saw bubbling in the water Sunday, followed by the sheen on Monday.

Platts Report

Apache Update

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From Upstream report:

The International Energy Agency (IEA) said preliminary data showed oil demand hit a record high of 87.7 million barrels per day over the past 12 months.

Related Wall Street Journal story:

The Organization of Petroleum Exporting Countries Monday said demand for its oil in 2011 will be stronger than it previously forecast owing to the recovery in the global economy.

BOE Comment: The deep water sector is the only option for significant near and intermediate-term increases in US oil production. Ditto for many other non-OPEC producers. We better get our act together soon.

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One of the better paragraphs I have read since Macondo:

The Deepwater story shows the fight against complacency is a continuous struggle, not a single battle. An executive at another oil major told me the default setting for safety managers should be “chronic unease”. That’s easy to see if you’re a prison governor or lighthouse-keeper. But it should be part of any executive’s attitude. Constant vigilance against, say, new competition, supply chain disruption, or unforeseen technological change is a must for modern managers.

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Great Australian Bight

Per the Sydney Morning Herald, BP has been granted the right to explore for oil and gas in the Bight area offshore South Australia.

Our energy security will be greatly enhanced by opening up new geological frontiers and reducing our dependence on imports. Resources and Energy Minister Martin Ferguson

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No government regulatory structure alone can guarantee safety in an industry that must constantly adapt new technology to natural variations in drilling sites and unexpected natural phenomena. Oversight must improve, as the Obama administration has made clear, but also every company involved in oil drilling – not just BP – must individually and in concert with others evaluate industry standards and safety research programs. And none should assume that BP’s mistakes could not occur elsewhere. Washington Post

Well said!

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